Thursday, December 20, 2012

IRS Nonacquiesces in Wandry

The Tax Court had held in the Wandry case (TC Memo 2012-88) that a fixed-dollar gift of an LLC interest (as opposed to a fixed percentage) was valid for gift tax purposes. This would be very helpful for taxpayers making gifts of hard to value assets. The IRS issued a notice that it will not acquiesce in this decision. AOD appearing at 2012-46 IRB. Some commentators believe this means that Treasury may issue regulations against fixed-dollar gifts, or that they have a better case in the pipeline.